You can’t touch them, and they’re not issued by governments, and yet millions of – mostly young – people still buy them. Now crypto investors are banking on the next group to get hip with digital dollars, baby boomers.
Mike Novogratz, founder of crypto firm Galaxy Digital, has made a fortune from cryptocurrency and he thinks the opportunity is just getting started with the next big group to buy into the trend as it becomes more mainstream, wealthy boomers.
“It could be as much as a trillion dollars comes over the next year from that giant group of wealth.”
Moves by major banks and trading platforms to begin offering cryptocurrency products to rich customers will likely spark the rush from wealthy baby boomers, Novogratz predicted.
Morgan Stanley this month become the first big U.S. bank to offer its wealthy clients access to bitcoin funds, including Galaxy Digital.
Baby boomers, born roughly from the end of World War Two to the mid-1960s, have been the chief beneficiaries of massive stimulus programs that have pumped up asset values since the 2008-9 global financial crisis.
Bitcoin powered to a record of nearly $62,000 this month, the latest milestone in a meteoric rise driven by growing adoption from major companies such as Tesla Inc and the embrace of bigger U.S. investors.
Yet most of the interest has so far come from younger investors comfortable with the concept of digital assets.
Many of them see bitcoin both as an asset that can dramatically appreciate in value and also one that can protect savings from the threat of inflation sparked by money printing.
Bitcoin, originally designed as a way to pay, is less of a currency than an asset that works best to store value, said Novogratz, a vocal proponent of cryptocurrencies.
“If you’re worried that the U.S. is printing too many dollars…you’re going to shift some of your savings into bitcoin.”
Just this week Fidelity announced it has created a bitcoin ETF and filed it with the SEC. We’ll see if the company gets regulatory approval.